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Bear's Lair

Bear Markets always follow Bull markets and a severe stock market correction is long overdue. Bears Lair will spot, monitor and analyze the stock market correction as it develops.

 

That was the question I asked myself after being 100% cash into the last hour yesterday and seeing the bottom fall out on the gold stocks once again.

I have never appealed to the so-called conspiracy theories in trying to explain the strange world of fluctuations in the price of monetary metals.

On Friday we witnessed a great plunge in gold (almost $80 – from $1560.30 to $1480.50) and silver (almost $1.7 – from $27.58 to $25.89) and we are seeing even lower prices this week.

I have come across the above item on eBay. It is selling at $60 for a 2 pound bag. It is not an illegal drug and it would not be much good for smoking either.

The threat of war against the United States is making headlines and roiling investors’ nerves.  While full-scale war is likely not imminent, it’s something worth considering in light of where we stand in the long-term War Cycle.

It has been a painful few days for those who believe that gold (and silver) are a safe haven from government money-printing machines and the mountain of debt of the Western economies.

To me, at least, times are fascinating as much as they are disturbing. The take down we have seen in gold and silver beginning on Friday and still continuing on Monday is breathtaking.

It has been an increasingly brutal ride for gold and silver, beginning around late March and accelerating through April. The gold price was over $1600 and on Monday April 15, it fell below $1350, a loss of $250.

I have come across the above item on eBay. It is selling at $60 for a 2 pound bag. It is not an illegal drug and it would not be much good for smoking either.

To me, at least, times are fascinating as much as they are disturbing. The take down we have seen in gold and silver beginning on Friday and still continuing on Monday is breathtaking.

When volatility prevails in the gold market, I love seeing so many different opinions because it promotes critical thinking and healthy markets.

Three weeks ago, the investing public was awarded a brief glimpse into the mysterious world of central banking through events in Cyprus.

Until recently I was expecting the bubble phase for gold to occur as we came out of the next 8 year cycle low in 2016.

For gold to rise to levels significantly higher than the recent high of $1920, a new impetus is needed.

When I was a boy I was told that anybody could become President. Now I’m beginning to believe it.



— Clarence Darrow


Late Friday afternoon in New York (April 12, 2013) gold plunged through the critical support level around $1525 level that has held resolutely since the start of this 19 month correction from $1900 in September 2011.

In the opening years of the last decade, most mainstream investors sat on the sidelines while "tin hat" goldbugs rode the bull market from below $300 to just over $1,000 per ounce.

"The main purpose of the stock market is to make fools of as many men as possible."


Bernard Baruch

Gold bullion prices have been subjected to a cleverly orchestrated bear raid in our opinion.

Precious metals investors can’t look back at this week’s declines in gold and silver and not be a little upset.  But it’s important to keep in mind that nothing happened this week that reversed the decade long bullish trends for g

Gold’s Bull market from 1999 is not over, and a huge rally leg remains in its future. That future is not far off.

Yes, I really do hate to say it but I did tell you so!


I’ve been sceptical and bearish on gold and silver in 2013 as soon as the initial low of $1,625 was broken.  We’re now some $150 lower.

What happened?! is the question so many are asking about Friday’s waterfall in prices.



TLT (T-Bond Proxy) Rally Update Chart

There’s been a recent huge draw down of physical gold at the New York COMEX and at the JP Morgan Chase depository. Look at the physical market draw down on the charts below. It has taken a drastic plunge.

Back in 2008, silver fell from over $20 per ounce down to below $10. This was a stomach-turning experience for those who had begun investing heavily in the metal.

“Give a man a fish and you feed him for a day. Teach a man how to fish and you feed him for a lifetime.”

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In 1934 President Franklin Delano Roosevelt devalued the dollar by raising the price of gold to $35 per ounce.

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